Conditions must an educational enterprise meet

Conditions must an educational enterprise meet this business model requires a complete set of elements including a name, headquarters, financial resources, and a management team to ensure transparent operation, enhance brand reputation, and create a favorable foundation for future expansion of training programs. The following content from Long Phan Consulting Company will help clients understand the core requirements for the effective and stable establishment and development of an educational business.

Name of educational enterprise

Naming educational businesses must comply with the naming principles specifically stipulated in the 2020 Enterprise Law.

According to Article 37 of the 2020 Enterprise Law, the Vietnamese name of an enterprise consists of two components in the following order:

• Type of business;
• Proper nouns.

The type of business is written as “limited liability company” or “LLC” for a limited liability company; as “joint-stock company” or “JSC” for a joint-stock company; as “partnership company” or “HD company” for a partnership company; and as “private enterprise”, “DNTN” or “TN enterprise” for a private enterprise.

Proper names are written using letters from the Vietnamese alphabet, the letters F, J, Z, W, numbers, and symbols.

The business name must be displayed at the head office, branches, representative offices, and business locations of the enterprise. The business name must be printed or written on transaction documents, records, and publications issued by the enterprise.

>>> See more: Steps to Apply for a Vocational Education Operation License

Address of the educational enterprise’s headquarters

According to Article 42 of the Law on Enterprises 2020, the head office must be located in Vietnam, serve as the contact address, and be determined by administrative boundaries; with a phone number, fax number, and email (if any).

Specifically for enterprises establishing vocational education institutions, Clause 3 Article 3 of Decree 143/2016/ND-CP (amended by Decree 140/2018, Decree 15/2019, Decree 24/2022) sets specific land area standards:

• Vocational Education Center: Minimum 1,000 m2.
• Intermediate School: Minimum 10,000 m2 (urban) or 20,000 m2 (non-urban).
• College: Minimum 20,000 m2 (urban) or 40,000 m2 (non-urban).
• Note: If the facility has land in both urban and non-urban areas, the conversion rate is 1:2 (urban land vs. non-urban land).

Education sector code

Based on Appendix I of Decision No. 36/2025/QD-TTg, the business registration codes for industries in the field of education and training include:

• 8511: Preschool education
• 8512: Preschool education
• 8521: Primary education
• 8522: Lower secondary education
• 8523: Secondary education
• 8531: Primary education
• 8532: Intermediate-level training
• 8533: College-level training
• 8541: University education
• 8542: Master’s degree training
• 8543: Doctoral training
• 8551: Sports and Recreation Education
• 8552: Cultural and artistic education
• 8553: Training activities for the use of non-commercial transport vehicles
• 8554: Pre-university education
• 8559: Other education not elsewhere classified
• 8561: Intermediary services for courses and tutoring
• 8569: Other educational support activities

Capital requirements for educational enterprises

Based on Clause 4, Article 3 of Decree 143/2016/ND-CP, amended and supplemented by Decree 24/2022/ND-CP, the investment capital for establishing vocational education institutions must be from legal sources, excluding the value of land, specifically as follows:

• For vocational education centers, the minimum capital is 05 (five) billion VND;
• For vocational schools, the minimum budget is 50 (fifty) billion VND;
• For colleges, the minimum investment is 100 (one hundred) billion VND.

Requirements regarding the legal representative of an educational enterprise

According to Clause 1, Article 12 of the 2020 Enterprise Law, the legal representative of an enterprise is an individual who represents the enterprise in exercising the rights and obligations arising from the enterprise’s transactions, representing the enterprise as a party requesting the resolution of civil matters, plaintiff, defendant, or party with related rights and obligations before arbitration panels, courts, and other rights and obligations as prescribed by law.

Therefore, the legal representative of the company must have full civil capacity and not be subject to the prohibitions on managing and establishing businesses as stipulated in Clause 17, Article 17 of the 2020 Enterprise Law.

>>> See more: The procedure for changing the legal representative of the company

Long Phan Consulting Company provides business registration and establishment services for educational institutions

The process of establishing an educational enterprise involves many complex stages, from preparing documents to applying for operating licenses. Long Phan Consulting Company provides solutions to help clients complete procedures most effectively and quickly. We structure our support into the following key areas:

• We provide advice on the establishment requirements that are suitable for the educational model you intend to implement.
• Providing advice and evaluating applications for establishing educational businesses.
• Assistance in preparing the necessary documents for registering an educational business.
• We will represent you in submitting the application to the competent government agency.
• Monitor the application processing progress and work directly with relevant agencies to provide explanations regarding the application.
• Receive and process any additional requests (if any).

Frequently Asked Questions About Conditions must an educational enterprise meet

Below, Long Phan Consulting Company provides some frequently asked questions regarding the requirements for establishing an educational enterprise. We invite interested clients to refer to this information:

Can the name of an educational institution contain special characters or numbers?

Yes. According to regulations on business names, proper names are allowed to be written using letters from the Vietnamese alphabet, the letters F, J, Z, W, numbers, and symbols. However, names must not use words or symbols that violate the historical traditions, culture, ethics, and customs of the nation.

Legal basis: Clause 3, Article 37 and Clause 3, Article 38 of the 2020 Enterprise Law.

Does the investment capital for establishing a vocational school include the value of the land use rights?

No. The investment capital for establishing vocational education institutions (centers, secondary schools, colleges) must be from legal sources, and the value of land is not included in the investment capital when determining the conditions for establishing these vocational education institutions.

Legal basis: Clause 4, Article 3 of Decree 143/2016/ND-CP (amended by Decree 24/2022/ND-CP).

What is the minimum investment required for a vocational training center?

To establish a vocational education center, businesses must meet the investment capital requirements as stipulated by law. Specifically, the minimum investment capital is 5 billion VND, sourced from legitimate sources.

Legal basis: Point a, Clause 4, Article 3 of Decree 143/2016/ND-CP (amended by Decree 24/2022/ND-CP).

Is it prohibited to name an educational institution the same as a registered business?

Yes. The Enterprise Law strictly prohibits the use of names that are identical to or confusingly similar to the names of businesses already registered and stored in the National Business Registration Database. Therefore, when carrying out business registration procedures, organizations and individuals must ensure that the proposed name complies with naming regulations, avoids infringing on the legitimate rights and interests of existing businesses, and ensures transparency and clarity in business registration activities.

Legal basis: Clause 1, Article 38 and Article 41 of the 2020 Enterprise Law.

Is it permissible to use an abbreviation for the type of business in the Vietnamese name of an educational company?

Yes. According to business law regulations, the type of business can be abbreviated when used in the business name. For example, “Limited Liability Company” can be written as “Limited Liability Company”; “Joint Stock Company” can be written as “Joint Stock Company”. This abbreviation is still considered compliant with regulations, as long as it accurately reflects the registered type of business and does not cause confusion with other legally registered businesses.

Legal basis: Clause 2, Article 37 of the 2020 Enterprise Law.

Is it mandatory for educational institutions to display their name at their main office?

Yes. The business name must be displayed at the head office, branches, representative offices, and business locations. In addition, the name must be printed or written on transaction documents, records, and publications issued by the business.

 Legal basis: Clause 4, Article 37 of the 2020 Enterprise Law.

Conclusion

Establishing and operating an educational enterprise requires strict compliance with legal regulations. To ensure a complete dossier and optimize licensing time, Long Phan Consulting Company is ready to support clients in resolving all inquiries.

Please contact Hotline 1900636389 for timely and professional assistance.